Höegh LNG closes financing for ninth FSRU

Norway’s floating storage and regasification unit (FSRU) giant Höegh LNG said it has secured debt financing for its ninth FSRU.

The company received commitment letters for a $177 million in debt financing for the unit, which is scheduled to be delivered in the fourth quarter of 2018.

The facility comprises a 12-year tranche of $132 million guaranteed by the South Korean export credit agency K-SURE and a five-year non-amortising commercial bank tranche of $45 million.

A combination of existing and new lenders are participating in the facility, Höegh LNG said in its statement.

The facility is available to fund 65 percent of the delivered cost of the FSRU based on a 16-year blended amortization profile. Höegh LNG intends to fix the interest rate and based on the current swap rate, the fixed interest rate is expected to be around 5 percent.